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Leases | 12 Months Ended
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May 31, 2024
Leases [Abstract] |
Leases | Note I — Leases The Company’s lease portfolio consists primarily of operating leases for office space and has remaining terms from less than one year up to ten years, with contractual terms expiring from 2024 to 2032. Lease contracts may include one or more renewal options that allow the Company to extend the lease term, typically from one year to five years per renewal option. The exercise of lease options is generally at the discretion of the Company. None of the Company’s leases contain residual value guarantees, substantial restrictions, or covenants. Supplemental balance sheet information related to the Company’s leases were as follows:
|  | May 31, |
$ in millions |  | 2024 |  |  | 2023 |
Operating lease ROU assets, net of accumulated amortization |  | $ |  | 46.9 |  |  | $ |  | 61.5 |
Operating lease liabilities, current(1) |  |  |  | 19.2 |  |  |  |  | 20.3 |
Operating lease liabilities, non-current |  |  |  | 49.0 |  |  |  |  | 57.3 |
Weighted average remaining lease term (in years) |  |  |  | 4.3 |  |  |  |  | 4.7 |
Weighted average discount rate |  |  |  | 3.23 | % |  |  |  | 2.21 | %
(1) The current portion of operating lease liabilities is reported in the other current liabilities line item on the Company’s Consolidated Balance Sheets. The components of lease expense were as follows:
|  | Year ended May 31, |
In millions |  | 2024 |  |  | 2023 |  |  |  | 2022 |
Fixed payment operating lease expense |  | $ |  | 28.7 |  |  | $ |  | 20.8 |  |  | $ |  | 27.2 |
Variable payment operating lease expense |  |  |  | 5.8 |  |  |  |  | 6.2 |  |  |  |  | 6.9 |
Short-term lease expense |  |  |  | 0.0 |  |  |  |  | 0.0 |  |  |  |  | - |
During the fiscal fourth quarter ended May 31, 2024 (the "fourth quarter"), the Company focused on cost optimization initiatives, including further reductions to our geographic footprint. As part of this initiative the Company ceased the use of certain leased property and accelerated the amortization of certain ROU assets, resulting in an additional $9.7 million of expense. This expense is included in cost of service revenue and selling, general and administrative expenses on the Consolidated Statements of Income and Comprehensive Income. The related lease liabilities will be satisfied under the original terms of the lease arrangements, unless buy-outs can be negotiated. Supplemental cash flow information related to the Company’s leases were as follows:
|  | Year ended May 31, |
In millions |  | 2024 |  |  | 2023 |  |  |  | 2022 |
Cash paid for amounts included in the measurement of lease liabilities |  | $ |  | 20.9 |  |  | $ |  | 21.7 |  |  | $ |  | 32.4 |
Amortization of ROU assets |  |  |  | 25.8 |  |  |  |  | 17.6 |  |  |  |  | 22.7 |
ROU assets obtained in exchange for new operating lease liabilities |  |  |  | 7.2 |  |  |  |  | 1.3 |  |  |  |  | 15.8 |
Lease incentives received in the form of tenant allowances and free rent |  |  |  | 0.8 |  |  |  |  | 0.8 |  |  |  |  | 9.1 |
Future lease payments are as follows:
|  | May 31, |
In millions |  | 2024 |
2025 |  | $ |  | 21.2 |
2026 |  |  |  | 16.1 |
2027 |  |  |  | 12.7 |
2028 |  |  |  | 10.7 |
2029 |  |  |  | 7.4 |
Thereafter |  |  |  | 5.1 |
Total future lease payments |  |  |  | 73.2 |
Less: imputed interest |  |  |  | 5.0 |
Total operating lease liabilities |  | $ |  | 68.2 |
Current portion |  | $ |  | 19.2 |
Non-current portion |  | $ |  | 49.0 |
As of May 31, 2024, the Company had no t entered into any lease agreement that had not yet commenced.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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